Mozambique merges loss making state communications firms

Mozambique has merged two state-owned telecommunications companies to return the loss-making firms to profitability and its plans to cut spending as it struggles with a debt crisis that is crippling the economy private television station, reports said on Friday.

The merge between Mozambique Telecommunications (TDM) and Mozambique Cellular (MCEL) would allow the convergence of fixed and mobile services, and voice, data and internet services using fixed and mobile platforms as the southern African country imposes austerity measures to cope with tough economic conditions.

The deal will help cut costs and will also enable the combined operation to market a range of converged fixed-mobile products. TDM is 90 percent state owned, with the remainder sold to management and employees in 2014; mCel is currently a wholly owned subsidiary of TDM.

Prior to 1999, TDM held a monopoly in the local telecommunications market. Since then, Mcel’s financial deterioration has occurred amid increasing competition from private-sector operators in the

Mobile-phone sector, including Vodacom Moçambique, operated by the South African subsidiary of Vodafone UK and Movitel, owned by Vietnamese company Viettel, itself owned by Vietnam’s Ministry of Defence.

According to local media reports, Mohamed Rafique Jusob has been appointed the new Chief Executive Officer of Mcel and TDM.